Question: market demand d for x is p30qand market supply s...
Question details
Market demand (D) for x is P=30-Qand market supply (S) for x is P=6+Q.The Government decides to impose a per-unity of production tax (t = 3) which causes the market supply function to decrease by 3 (shift to the left) or become Sor P= 9+ Q.Graph, in the same diagram, D, S, and S.Compute:(a) Market Gains (MG) before and after the tax;(b) Governmental Revenue (GR);(c) Economic Welfare (EW); and(d) Dead-Weight Loss (DWL); how is the burden of the tax distributed among consumers and producers?
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